SIA

SIA: confirmed that it had lodged an application with the Australian Competition and Consumer Commission (ACCC) for its recently announced alliance with Virgin Australia. The application was submitted 20 Jun. SIA and Virgin Australia will provide access to each other's networks, coordinate schedules and pricing, engage in joint mktg & distribution, and offer reciprocal frequent flyer benefits and lounge access…

The deal does not cover all of SIA and SilkAir's extensive global network, nor all of Virgin Australia's domestic and intl destinations. Significantly, SIA does not get a "backdoor entry" into the Australia-US trans-Pacific route via Virgin Australia's existing service and any routes where Virgin has codeshare coverage with Etihad Airways…

Virgin Australia also does not automatically get SIA's lucrative European routes like Spore-London.
SIA current trades at 15.6X P/E. Recommendations in June are mixed with TP $12.35 - 17.00.